UAE Carbon Alliance to acquire $450m of Carbon Credits from ACMI

The United Arab Emirates Carbon Alliance has undertaken a commitment to acquire $450 million worth of carbon credits from the African Carbon Markets Initiative (ACMI) by the year 2030. This significant agreement was formalized during the inaugural Africa Climate Summit, where Sheikha Shamma bint Sultan, the President and Chief Executive of the UAE Independent Climate Change Accelerators (UICCA), signed a letter of intent with ACMI.

The UICCA, which launched the UAE Carbon Alliance in June 2023, aims to assist companies in transitioning to a green economy as part of the country's Net Zero by 2050 Strategic Initiative. The coalition includes prominent entities such as Mubadala Investment Company, First Abu Dhabi Bank, Masdar, and AirCarbon Exchange.

Driving Africa's pursuit of carbon credits is the ACMI, established at COP27 last year. This initiative unites African nations with major climate investors like Bezos Earth Fund and Rockefeller Foundation, with a focus on reducing emissions and enhancing transparency in voluntary carbon markets on the continent.

Companies seeking to offset their carbon emissions against predefined targets can purchase carbon credits, each representing the prevention of one tonne of CO2 release. To attain their ambitious goal, ACMI founders emphasize the need for early commitments from investors, with the UAE Carbon Alliance emerging as their primary supporter.

The Emirati group envisions becoming a leading hub for high-integrity, high-quality carbon markets, facilitating the trade of carbon offsets and bridging the gap between the high-integrity supply of African carbon credits and the strong demand from the Middle East.